Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has disclosed that commercial sex workers in Nigeria will be required to pay tax beginning from January 2026.
According to Oyedele, this new directive forms part of new tax reforms that will take effect next year.
He made this disclosure while speaking at the Redeemed Christian Church of God, City of David parish in Lagos on Saturday, September 27.
Ayodele stated that the federal government intends to cast the tax net wide to include on all services rendered in exchange for money, and sex work is not an exception.
“For example, if somebody is doing run girls, they go and look for men to sleep with; you know that’s a service. They will pay tax on it,” he said.
Oyedele added that the law is designed to treat every income source equally, without asking whether it was obtained through legal or illegal means.
He explained that the law itself does not have the capacity to distinguish between income obtained from legitimate means and illegitimate ones; hence, all income is deemed taxable.
Olosho will pay Tax.
— Duru Bond (@Bond_not_james) September 29, 2025
Cc: @taiwoyedele Pt10 pic.twitter.com/4udDXS1wL7
What to know about new tax laws
1. The Federal Inland Revenue Service (FIRS) has been renamed the Nigeria Revenue Service (NRS).
2. The NRS will now collect revenues previously handled by agencies such as the Nigeria Customs Service, NUPRC, NPA, and NIMASA.
3. Individuals earning ₦800,000 or less per year will be exempt from paying income tax.
4. A 25% personal income tax will apply only to those earning above N50 million annually.
5. Small business owners will be fully exempt from income tax.
6. From 2026, corporation tax for medium and large firms will be reduced from 30% to 25%.
7. VAT Exemptions on Essentials: Basic items such as food, medical services, medicines, school fees, and electricity will be exempt from VAT.
8. VAT remains at 7.5%, and corporation tax stays at 30% — there has been no increase.
9. A 2%–4% levy will fund key national institutions, including NELFUND, TETFund, NITDA and NASENI.
